Indicate whether each of the following statements is true or
Indicate whether each of the following statements is true or false:
a. The cash basis of accounting recognizes revenues when they are received.
b. In the cash basis of accounting, there is no such thing as a prepaid rent account.
c. In the accrual basis of accounting, paying an account payable creates an expense.
d. In the accrual basis of accounting, interest should be recognized only when it is paid.
e. Cash receipts from customers increase accounts receivable.
f. Expenses decrease shareholders’ equity.
g. Dividends are an expense of doing business and should appear on the statement of income.
h. Interest paid on bank loans is reported in the operating activities section of the statement of cash flows.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help